Nexteer Automotive Group (1316) H1 2026 earnings summary

Executive summary

• Achieved record first half 2026 revenue of $2.3 billion, up 3.9% year-over-year, outpacing the market and supported by strong program launches and robust bookings.

• Adjusted EBITDA increased 14.1% to $263 million, with margin expanding to 11.3% and net profit attributable to equity holders rising 35.2% to $86 million.

• Free cash flow reached $109 million, nearly triple the prior year, reflecting disciplined capital allocation and operational efficiency.

• Secured $3.3 billion in new business bookings, on track for a $6 billion full-year target, with significant wins in Steer-by-Wire and premium EPS applications.

• Launched 28 customer programs, including first Steer-by-Wire production programs and new facility launch in Thailand, demonstrating technology leadership and regional expansion.

Financial highlights

• Revenue grew 3.9% year-over-year to $2.3 billion, with growth in all regions: NA +2.7%, APAC +3.2%, EMEASA +11.6%.

• Adjusted EBITDA margin improved to 11.3% from 10.3% in 1H 2025.

• Net profit margin increased to 3.7% from 2.8% year-over-year.

• Free cash flow was $109 million, up from $37 million in the prior year.

• Favorable FX impact from strengthening RMB and Euro.

Outlook and guidance

• On track to achieve record full-year revenue and above-market growth, with bookings expected to reach $6 billion.

• Additional Steer-by-Wire program launches anticipated in the second half, supporting long-term growth.

• Effective tax rate expected to be slightly below 25% for the year; long-term rate in the high teens.

• No interim dividend declared for the period.

• No material capital investments planned for the remainder of 2026.